Jobs boost for logistics giant Exel

LOGISTICS group Exel, the world's second largest supply chain, is to create around 800 new jobs thanks to new contract wins, despite slowing business from its technology and US customers.

The company, formed through the merger a year ago of Ocean and NFC, said it had won contracts worth £50m since the New Year, leading to the new jobs. Exel has also struck a deal to provide supply chain services for supermarket chain Sainsbury's.

'The inflow of good contract wins has remained strong during the first two months of 2001,' said chief executive John Allan. 'Despite short-term uncertainties, we remain confident about the prospects for the group.'

Exel planned further moves to cut costs and raise productivity to combat any prolonged slowdown, and had raised its merger savings target to £25m a year from £15m previously. But it warned that it would take an additional related hit of £15m in the first half of this year. Shares in the business, which fell to a year's low on Friday, climbed 6p to 893p.

Pre-tax profits for the year ended 31 December fell 5.6% to £190.6m before one-off items and goodwill, broadly in line with market forecasts. Sales on continued operations rose 24% to £4.33bn, with operating profit ahead 15% to £212.6m. Exel declared a final dividend of 13.9p a share, raising the total by 5.9% to 20.7p.